SCM 300 Questions and Answers
3 branches of SCM - ✅✅procurement,(purchase) operations(manufacturing),
and logistics(transportation)
reverse logistics - ✅✅The branch of supply responsible for the movement of
products and packaging that flow backward in the supply chain, away from the
consumer and back in the direction of manufacturers(if a customer is returning an
item)
3 SCM flows - ✅✅materials, money and information
business model - ✅✅A company's plan for how it will purchase items,
transform them, deliver them, and sell them in an effort to produce profit.
4 SCM Competitve Priorities - ✅✅cost, quality, speed, and flexibility
supplier tiers - ✅✅1st tier: a company's direct suppliers; typically a firm that
directly provides goods and services to a company
2nd tier: a firm that provides goods and services of a first-tier supplier
inventory - ✅✅The items that are owned by a company for the purpose of
present or future sales or for use in day-to-day operations
lead time - ✅✅The period of time between when an order is placed and when
the order is received by a customer
, Calculate simple moving average & weighted moving averages (Demand
Forecasting) - ✅✅Simple: take the mean of the bottom 4 numbers
Weighted: take the last 4 numbers, put weights in order and multiply the sales
volume by weights, and add all numbers together
Inventory classifications (i.e MRO, safety stock, anticipation etc...) -
✅✅Carrying inventory is expensive, therefore risky. It can also be risky not to
carry inventory because you may not be able to satisfy the needs of a customer.
Demand forecasting: a predictive analysis or estimation of consumer demand in
the future
Maintenance, repair, and operation(MRO): items that are not intended as part of
the finished goods but are important to the daily operations of the
company.(desks, chairs, and cleaning supplies)
Anticipation inventory: inventory that is created and stored for future use. This is
typically used to absorb uneven rates of demand or planned price reductions.
Safety stock: inventory kept to account for variation/uncertainty of demand
Lot size - ✅✅An accepted order size. This sometimes refers to a possible order
size increment. Example: lot size of 100 units. Ordering 100, 200, 300, etc., would
be possible order sizes
Pros cons buy vs make - ✅✅Reasons for making:
Proprietary technology: Others can't make it or our company does not want to tell
anyone else how to make it
No competent supplier: others can make it but not as good as we can
Better quality control: we like it made a certain way with detail
Idle capacity: we have machines and people to make it so why not take advantage
3 branches of SCM - ✅✅procurement,(purchase) operations(manufacturing),
and logistics(transportation)
reverse logistics - ✅✅The branch of supply responsible for the movement of
products and packaging that flow backward in the supply chain, away from the
consumer and back in the direction of manufacturers(if a customer is returning an
item)
3 SCM flows - ✅✅materials, money and information
business model - ✅✅A company's plan for how it will purchase items,
transform them, deliver them, and sell them in an effort to produce profit.
4 SCM Competitve Priorities - ✅✅cost, quality, speed, and flexibility
supplier tiers - ✅✅1st tier: a company's direct suppliers; typically a firm that
directly provides goods and services to a company
2nd tier: a firm that provides goods and services of a first-tier supplier
inventory - ✅✅The items that are owned by a company for the purpose of
present or future sales or for use in day-to-day operations
lead time - ✅✅The period of time between when an order is placed and when
the order is received by a customer
, Calculate simple moving average & weighted moving averages (Demand
Forecasting) - ✅✅Simple: take the mean of the bottom 4 numbers
Weighted: take the last 4 numbers, put weights in order and multiply the sales
volume by weights, and add all numbers together
Inventory classifications (i.e MRO, safety stock, anticipation etc...) -
✅✅Carrying inventory is expensive, therefore risky. It can also be risky not to
carry inventory because you may not be able to satisfy the needs of a customer.
Demand forecasting: a predictive analysis or estimation of consumer demand in
the future
Maintenance, repair, and operation(MRO): items that are not intended as part of
the finished goods but are important to the daily operations of the
company.(desks, chairs, and cleaning supplies)
Anticipation inventory: inventory that is created and stored for future use. This is
typically used to absorb uneven rates of demand or planned price reductions.
Safety stock: inventory kept to account for variation/uncertainty of demand
Lot size - ✅✅An accepted order size. This sometimes refers to a possible order
size increment. Example: lot size of 100 units. Ordering 100, 200, 300, etc., would
be possible order sizes
Pros cons buy vs make - ✅✅Reasons for making:
Proprietary technology: Others can't make it or our company does not want to tell
anyone else how to make it
No competent supplier: others can make it but not as good as we can
Better quality control: we like it made a certain way with detail
Idle capacity: we have machines and people to make it so why not take advantage
